Tuesday, November 17, 2009

BMW Management Salaries

BMW recently announced that it will peg all of its management salaries to worker wages to ensure the two grow at the same rate and that a large gap does not appear. At BMW a board members earns about 25 times average wages, and that will now be the established ratio. (See Deutsche Welle article

The gap between executive compensation and average worker wages has skyrocketed in the U.S. since the early 1980s. Today CEOs on average earn more than 300 times average worker wages. The comparable figure for Germany is less than 20 times average wages, and for Japan less than 12 times average wages.

No comments:

Post a Comment